Refinancing

With interest rates being at record lows this month, people are calling about refinancing their mortgages, sometimes for the second time in the past two years.  There are many things that you should look at before deciding to refinance your loan.  Will you be in your home for more than the next few years?  If you are gong to sell in the near future, what will the balance be on the loan if you refinance?  How much interest will you save over the life of the loan?  Can you reduce your mortgage term and keep the same mortgage payment?

What is involved in the loan process?

Everyone who is buying a house wants to know "When can I close and why does it take so long to get a mortgage?"  There is no right answer to this question when you are in the process of getting a loan, but the loan officer you are working with can try and give you a realistic time frame of the amount of time it should take to get your loan completed.  The reason that there is no set timeframe is because the combination of the type of loan, borrower circumstances and home are different for every situation.  This blog will help explain what the typical loan process entails.  If you are involved with additional circumstances outside of the explanation given, more time may be necessary.  Additional circumstances can include: loan with state assistance, loans with improvements being rolled into the house, condos, USDA, VA or FHA loans.  If a borrower is getting gift funds, pulling money out of a 401K or obtaining a bridge loan will require further information.


I hope this helps!

Condos, Condos, Condos!

Financing Condos has become a very challenging task in today's mortgage market.  It is more important than ever to choose the right lender from the start to help you close on your condo.  As a mortgage broker, we have access to many different types of lenders, which will help you successfully go through the loan process with the right bank.  It is also very important with condos to have all the necessary documents when you are listing or buying  the condo, in order to provide  the lending institution what is needed from the beginning.

FHA or Conventional??

One of the most common questions I get from clients and real estate agents is, "What type of loan is better, FHA or Conventional?"  Both loans are great financing options, it is more a matter of where you fit in to each program.  You need to look at credit scores, where your money is coming from how much seller's assistanc you need, and what the mortgage insurance factor is for each loan. 

Credit Scores

Credit Scores are the base factor on deciding if and what type of a mortgage that you can obtain.  In this blog, I explain briefly what credit score ranges are and where your credit scores need to be in order to finance a home.

Costs associated with your Credit Score

In additional to the normal closing costs and pre-paid items that you incur when you purchase or refinance a home, there are additional costs that are charged depending on your credit score and other factors of your loan.  In this weeks blog, I explain an example of one of these costs and how they are determined.  These costs are not created by the banks that lend the money, but by the secondary market that sets the rules for all lending institutions.  Please see these costs summarized below.

Get Pre-approved from the start!

Getting pre-approved is the first thing you should do if you are considering purchasing a home or refinancing your current home.  It is a very simple and quick process that should only take minutes to get started.  You will set yourself apart from other buyers by being pre-approved as well as having confidence that you have looked into your financing options before writing up an offer.

Don't just shop for the best interest rate!

In today's blog, I am talking about shopping for the best mortgage.  Many people think that by getting the best interest rate, they are getting the best mortgage.  This is not true.  You need to learn how to shop for the best mortgage program and find a lender/mortgage consultant who offers a variety of products.

Introduction to the new mortgage broker blog!!

Thanks for visiting my first blog of many to come.  I hope you find the information here helpful and valuable.  If you have any questions, commments or requests, please e-mail me at Megan@SelectMortgageErie.com